Category: Companies House

If you were expecting to register for Making Tax Digital when you had more time, there is an important change to know about. From September 2026, HMRC has started signing up sole traders and landlords who are required to use MTD but have not registered themselves. The process is happening in stages, and HMRC will…
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Your income has fallen below the Making Tax Digital threshold. Does that mean you can immediately stop keeping digital records and sending quarterly updates? Not necessarily. HMRC looks at your qualifying income and when the change happened. If your income falls below the relevant threshold after the tax year has already started, you generally remain…
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Cash may not leave a bank statement, but it still counts as part of your business records. If a customer pays you in cash, you should record the income just as you would a bank transfer — including the date, amount and what the payment was for. The same applies to cash expenses: a receipt…
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Selling a few unwanted clothes on Vinted or eBay does not automatically make you a trader. If you are simply getting rid of personal possessions you no longer need, you will generally not have to pay Income Tax on those sales. The situation can change when you start buying items specifically to resell them for…
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Your business had a strong year, but your income has now dropped significantly. You check your Self Assessment and see that HMRC is still asking for Payments on Account based on your previous tax bill. Why? These payments are normally calculated from the previous year’s tax liability, with instalments usually due on 31 January and…
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Not every letter from HMRC means you have done something wrong — but ignoring one can turn a simple tax query into a much bigger problem. Some letters may ask you to provide information, correct something on your tax record or take action by a specific date. The important detail is often hidden in the…
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The first quarterly deadline under Making Tax Digital (MTD) for Income Tax was 7 August 2026. This was the first reporting deadline for taxpayers who entered the new MTD system from April 2026 and are required to send quarterly updates to HMRC. If you missed the 7 August deadline, there is no need to panic.…
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For self-employed individuals in the UK, having a separate business bank account is generally not a legal requirement. However, keeping business transactions separate from personal spending can make bookkeeping much easier. It allows you to track your income and expenses more clearly and makes preparing your tax return simpler. A separate account can also give…
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If a rental property is jointly owned by two people, each owner is responsible for their own share of the property income for tax purposes. For example, if two people own a property 50:50 and it generates £20,000 of rental profit, each person would normally have £10,000 included in their own property income. Under Making…
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Under Making Tax Digital (MTD), keeping digital records means more than simply taking photos of your receipts. Your records should contain enough information to clearly show your business income and expenses, including the date, amount, category and nature of each transaction. You should also keep details of your sales, purchases and other relevant financial transactions.…
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